There is actually a glut of oil in the markets... This is a dollar problem not a scarcity problem... This is the "little secret" they never tell you about...
Even in the 70's Arabs got blamed for Nixon taking the dollar off the gold standard in 1971...markets always thrash around for a while...so the surge in oil was not instant after 1971...but it followed closely after Nixon abandon the Bretton Woods agreement that the dollar would be pegged to Gold...
I might add that during the 70's "oil shock" there was also a glut of oil being held off the market because of the Johnson/Nixon Dollar debacle...which caused the Bretton Woods Rules to collapse... Simply put the oil producers were unwilling to sell oil for the newly devalued Nixon Dollar.
When currencies are "tampered with" by central banks...bad things happen...
The 2008 Wall Street Catastrophe and the FEDs bizzare flooding of the markets with cash...is basically the same as the inflation crisis that occurred after the Johnson Welfare State and VietNam War spending hit the markets hard...
So forget Libya and the middle east...this is a dollar problem... Blame Bernanke for the surging oil prices not the Muslim protesters...
